Case Analysis

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CASE FOR ANALYSIS

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CASE FOR ANALYSIS – Case 1 Kinko’s New Operating Structure Kinko’s Inc. was the largest retailer of copying stores, but it had to change its operating structure in response to competitive pressures from Quick Copy and OfficeMax. Kinko’s had an informal management process and difficulty managing growth. The founder, Orfalea, used franchising to launch growth, but this approach did not assist Kinko’s in controlling costs or improving customer service. Consultants recommended centralized control and a set of internal authority relationships. 1. What were the problems facing Kinko’s managers?

Kinko’s structure was too decentralized, making it difficult for top managers to implement changes rapidly. The structure was informal with decisions left up to Kinko’s franchisees, and no sharing of ideas on customer service. 2. What steps did managers take to solve these problems?

Kinko’s centralized operating systems such as purchasing and finance to reduce costs. Kinko’s developed a more formal organizational structure. It may take time for the store owners to relinquish control, but this structure should help Kinko’s to respond more quickly to competition and develop consistent procedures and services to meet customer needs. CASE FOR ANALYSIS – Case 2 Kinko’s New Operating Structure Kinko’s Inc. was the largest retailer of copying stores, but it had to change its operating structure in response to competitive pressures from Quick Copy and OfficeMax. Kinko’s had an informal management process and difficulty managing growth. The founder, Orfalea, used franchising to launch growth, but this approach did not assist Kinko’s in controlling costs or improving customer service. Consultants recommended centralized control and a set of internal authority relationships. 1. Why did the managers at the two organizations have different ethical stances towards their customers? (Hint go to J&J’s website and look at its Code of Ethics).

It is clear from looking at J&J’s credo that they really focus on stakeholders and making ethical decisions. The credo can be viewed at http://www.jnj.com/our_company/our_credo/index.htm. It might be worthwhile to either print this out or bring up the website during class. In contrasting the stance, you might discuss how at Dow Corning, the management behavior seemed “out of character.”

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CASE FOR ANALYSIS

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What this shows is that organizations must put forth effort to manage ethically, it does not just come naturally to so called “good managers.” Johnson and Johnson does this, and this is illustrated quite well by their credo. 2. Outline a series of steps Dow Corning’s directors and managers should have taken to have prevented this problem.

The point is that they should have had some sort of ethical system in place to help guide them in making decisions. Had they had a system like J&J, this would have never happened. CASE FOR ANALYSIS – Case 3 How Ford Manages Its Environment This case illustrates the various ways in which Ford has managed its environment over the years. 1. List the various ways in which Ford has attempted to manage its environment over time.

This is a good illustration of the many different ways that the environment can be managed. Early on, Ford used contracts. As the environment got more complex, they began producing their own parts. This is a good application of resource dependency theory in that they managed their environment by reducing their dependency on suppliers. When the environment became even more complex in the 1980s, Ford developed some keiretsu-type arrangements in order to manage this. 2. Why did Ford change the methods it used to manage the environment?

The key here is to make sure students understand that the management strategy needs to fit the environmental situation. They didn’t just change from contracts to keiretsu’s because it was a new management technique, but rather they did this in response to the...
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